CleanTech Lithium PLC on Wednesday said it has received confirmation that the Chilean government is assessing its lithium contract application.

The Chile-focused lithium exploration and development company submitted expressions of interest on June 17 to the Chilean government relating to the Laguna Verde and Viento Andino projects alongside three other joint ventures.

This forms part of the process CleanTech must follow to be awarded a special lithium operating contract to produce lithium.

Management believes the company is in a strong position to meet the criteria set out by the government with Clean Tech having the support of local communities to co-develop the projects, and opting to use direct lithium extraction.

Following an announcement made by the government yesterday the company now expects to hear back by the end of August.

It has been confirmed that a total of 88 expressions of interest were received with over 80% indicating the use of DLE technology.

Chief Executive Officer Steve Kesler said: ‘We remain very confident that our flagship project, Laguna Verde, which is the most advanced DLE project in Chile, will be prioritised... The company has demonstrated that it is developing lithium projects in line with the objectives of the National Lithium Strategy, evidenced by the extensive groundwork we have completed over the past few years. We have an operational DLE pilot plant to sustainably extract lithium and have been pursuing early engagement with local communities with a co-signed agreement.’

The Chilean government will now engage with local communities throughout July, while considering the viability of each applicant based on finances, estimated production, use of technology, and experience, among others.

CleanTech shares were up 8.5% to 16.00 pence each in London on Wednesday afternoon.

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